Watch them soar

Many factors impact private brand ups and downs within any particular retail food, beverage or non-food category. New product innovations, consumer trends and other factors all wield an influence on growth, or the lack thereof.

Each year, Store Brands takes a look at the segments that are soaring — those categories and subcategories in which store brands posted dollar and unit sales gains of 5 percent or more and accounted for $5 million or more in total sales. Making our 2016 list, based on data from Chicago-based market research firm IRI for the 52 weeks ending June 12, are 61 food and beverage categories (compared to 76 in 2015) and 48 non-food categories (compared to 65 in 2015). See the tables, beginning right.

A convergence of trends

On the food and beverage side, a number of trends are working separately and in combination to impact growth in numerous own-brand food and beverage categories. For example, the “home-based coffee craze” is keeping single-cup coffee in mega growth mode (+38.1 percent in dollar sales and +36.1 percent in unit sales), according to Susan Viamari, vice president, thought leadership for IRI.

“We have seen a lot of innovation across national brands in this area during the past several years, and private label marketers are also focused on bringing high-end coffee to market,” she says.

Other major trends, Viamari points out, are healthier for you, flavor satisfaction/excitement, home-based eating, premium quality, quick and easy, and portable. Some examples of Movers and Shakers segments that tap into one or more of these trends are ready-to-drink coconut milk (+29.9 percent and +31.7 percent), refrigerated almond milk (+23.6 percent and +24.9 percent), refrigerated fresh soup +15.6 percent and +11.8 percent), seltzer/sparkling/mineral water (+9.8 percent and +10.8 percent), refrigerated hand-held non-breakfast entrées (+9.8 percent and +5.8 percent) and frozen fruit (+9.2 percent and +5.7 percent).

Despite the better-for-you trend, store brands also realized strong growth in a number of indulgent sweet goods categories and subcategories, perhaps in line with the continued trend for small indulgences and home-based eating, as well as certain retailers taking the dive into new territory. The five strongest performers here include cookie/cookie bar mixes (+156.2 percent and 97.8 percent), frozen sweet goods/no cheesecakes (+34.6 percent and +16.6 percent), refrigerated pastries/Danish/coffee cakes (+28.7 percent and +39.1 percent), pies/no snack pies (+16.5 percent and +18.7 percent) and muffins (+13.3 percent and +5.8 percent).

Wanted: power and performance

On the non-foods side, many of the Movers and Shakers mesh with the categories that “popped” in IRI’s New Product Pacesetters report, published in April, Viamari points out. In these categories — within the beauty care, health care, personal care and home care arena — power and performance reign supreme.

“Consumers want to get things done easily, with better, longer-lasting results,” she says.

On the beauty care side, the strongest own-brand performers were eye liner (+52.3 percent and +46.1 percent), lipstick (+39.5 percent and +49.3 percent), concealer (+33.5 percent and +26.8 percent), men’s hair coloring (+30.3 percent and 42.4 percent) and lip gloss (+23.4 percent and +38.5 percent). Meanwhile, power toothbrushes (+37.1 percent and +35.3 percent), razors (+35.4 percent and +20.4 percent), grooming/shaving scissors (+34.8 percent and +23.3 percent), dental accessories/tools (+13.4 percent and +19.9 percent) and moist towelettes (+12.8 percent and +10.1 percent) came out on top on the personal care side.

“Self-driven care/beauty is also quite prevalent these days,” Viamari notes. “A lot of times, this trend co-exists with power and performance,” she adds, pointing to nail accessories, muscle/body support, grooming/shaving accessories, makeup remover implements and eye/lens care as examples of Movers and Shakers list-makers that meet these trends.

Keep up the momentum

To keep these Movers and Shakers segments in growth mode — and light a fire under others — retailers will need to heed the trends that are driving growth among the national brands, Viamari maintains. She points to a few key trends from IRI’s 2016 New Product Pacesetters report:

• Four in 10 consumers now buy premium-quality foods and beverages regularly, pampering themselves without overspending. “Think flavor excitement, healthier-for-you and sophistication — restaurant quality in the home,” Viamari advises.
• Twenty percent of consumers actively seek home-care products that are better for the environment, while 17 percent look for beauty products with anti-aging benefits.

Retailers also should understand needs, wants and priorities vary from consumer to consumer, and they want consumer packaged goods solutions that address this reality, Viamari adds.

“Think olfactory experiences; standing out from the crowd [via] exciting results, colors, scents, etc.; and highly targeted solutions [such as] vitamins for heart health, pet food for older pets, hair care for ethnic hair, etc.”